Excel Legacy Announces Scottsdale Canals Vote.

SAN DIEGO--(BUSINESS WIRE)--Sept. 8, 1999--

Excel Legacy Corporation (AMEX:XLG) (Legacy) announced today that a special election held on Sept. 7, referred to the citizens of Scottsdale by the Scottsdale City Council to decide whether the City of Scottsdale had the authority to facilitate the financing of a state approved cultural theme park, located roughly at the intersection of Scottsdale and Camelback Roads, was narrowly defeated by a margin of approximately 53% to 47%.

Legacy controls the Scottsdale Galleria and several surrounding land parcels for which alternate uses will now be considered.

"Although we were disappointed in the defeat of the theme park funding, Legacy has no shortage of excellent investment opportunities in which to redeploy the capital that was ear marked for the Canals of Scottsdale development," stated Gary B. Sabin, CEO and President of Excel Legacy.

Sabin continued, "Legacy has approximately 23 additional projects in various stages of development, several of which will be under construction in the year 2000. The resources which would have been directed toward the Canals project will now be directed towards several other signature entertainment projects such as the Los Arcos project also in Scottsdale, Ariz., Newport on the Levee in Newport, Ky., Pointe Anaheim, in Anaheim, Calif., and the redevelopment of Desert Fashion Plaza in Palm Springs, Calif. We are delighted with the opportunities and progress made in each of these projects. "

Excel Legacy's philosophy is to pursue signature projects that have the potential to generate above average profits because of their unique locations, concepts and/or entry barriers. Excel Legacy is a public real estate company organized to create value through the acquisition, development and management of real property and real estate-related operating companies.

Many of the projects are singularly unique with respect to the project, the inherent barriers to entry by competition.

Certain statements in this release that are not historical fact may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results of the Company to differ materially from historical results or from any results expressed or implied by such forward-looking statements, including without limitation: national and local economic conditions; the competitive environment in which the Company operates; financing risks; property management risks; acquisition and development risks; potential environmental and other liabilities; and other factors affecting the real estate industry generally. The Company refers you to the documents filed by the Company from time to time with the Securities and Exchange Commission, specifically the section titled "Certain Cautionary Statements" in the Company's Annual Report on Form 10-K for the fiscal year ended July 31, 1998, which discuss these and other factors that could adversely affect the Company's results.